Engage a harvest manager
You can engage a harvest manager to plan and coordinate all your harvest activities.
A harvest manager will plan and coordinate the harvesting activities, the environmental and health and safety requirements, and selling of the logs. You will have some control of decision making. You need to be aware that as a person conducting a business or undertaking (PCBU), you still have responsibilities under the Health and Safety at Work Act 2015.
Make sure you:
- check the harvest contractors are audited by a third party like SafeTree, or International Standard for Organisation (ISO). Third party auditing will also ensure contractors have a health and safety policy in place
- get references from contractors, previous or current clients (forest owners) and customers (log buyers)
- ask your local council’s resource consent officer for any previous non-compliance issues (contractor and harvest manager)
- ensure their contractors have the right machinery configuration for your forest, use appropriate harvest methods and have a history of good compliance
- check their current operations and previous harvesting sites in the area (if possible)
- ask for a breakdown of estimated costs and revenues instead of a lump sum estimate
- find out how they charge (for example, whether their harvest and market fee is a fixed price, percentage, or cost plus)
- are sure they can meet their financial obligations
- ask if log revenue can be kept in an independent trust account
- find out how they will show outgoing invoices or payments if you ask to see these (for transparency of harvesting operations)
- find out if the harvest manager has any supply agreements to sawmills or exporters that they need to fulfil. They might need to send logs to a customer at extra cost (less profit to you)
- ask what kind of communication you’ll have during the harvesting process and agree on a communications plan that works for you
- you have the final say in the timing of the harvest. For example, if the log market is down but the crew is available, do you want to start?
If you engage a harvest management company, follow up conversations with an email to make sure you have a written agreement of what was discussed.
Farm Forestry New Zealand’s article has some tips on things to talk about with your harvest manager before a contract is agreed.
Communicating with harvest managers
Keep in touch with your harvest manager once harvest activities start. Arrange a communications plan such as weekly phone calls and monthly reports.
Monthly reports
Make sure the monthly reports include health and safety and environmental audit information. It should also include a breakdown of production, revenue and costs (actual verses budget).
Log dockets
Every load of logs will have a log docket (paper or electronic) connected with it. The log docket will show:
- the species
- log grade and length
- date
- customer
- delivery destination
- log truck number.
It will be signed by the loader operator and truck driver.
The weight will be added after the load has been weighed on a weigh bridge.
Make sure you get a copy of every log docket used, and that there is no missing information. This helps to make sure every load of logs is accounted for.
Market fluctuations
If the log market fluctuates during the harvest, make sure the harvest manager discusses options to minimise your exposure to financial risk.
Extra costs
When there are forecast cost overruns compared to the original estimate, ask the harvest manager to discuss the extra cost with you before it is spent.
Onsite visits during harvesting
You may wish to visit the harvesting operation. Frequencies of forest owner visits can vary with the size of the operation. You might stay away completely, or only go onsite a few times, such as:
- when the harvest starts
- mid-harvest
- at the end of harvesting to do your final check.
Agree on times when you will carry out onsite visits and check whether the harvest manager will accompany you. The harvest manager will advise if you also need to liaise with any of the contractors before going onsite.
The harvesting area is a work site controlled by the harvesting contractor. Anyone who enters a harvesting area needs to go through a site induction and sign in. Radio call-ups are often required for vehicle safety when accessing sites and travelling on harvest roads.
Post-harvest inspection
It is important you inspect your land before the harvesting contractors leave the site.